MBA €319 Negotiation Skills and Techniques BATNA, + Introduction + Whats BATNAP + Why to explore your BATA? + Consequences of not ascertain your BATNA? ‘Types of BATNA + Ascertaning your own BATNA + Ascertaning Other partys BATNA + strengthening you SATNA + Distosing your BATNA Introduction What is BATNA? * introduced by Roger Fisher & William ‘Best Altemative To a. Negotiated ‘Aareement” + A courte of scion that wil be taken by party ithe current negotiations fi, + Point which a negotisor i prepered ‘> walk away fom the negobation table, +B standard agaist which an agreement is mensered, What is BATNA? coma, extemal Standards + Precedents; records of past agreements + Legation and egultions + Expert opinion ‘xteral Standard are ured in negotition + To set the direction ofthe negotiation by restricting It ‘to. dearly defined number orange of outcomes To avld wasting time defending extrome or 2 positions Why to Explore/Have Your BATNA + Aveidin pushing ito an agreement ‘Confirm that @ negotiated agreement is better than the alternative, + Helps to Know whether other party has leverage + Understand when you have leverage Why to Explore/Have Your BATNA cont Leverage expresses what would be bed for the ‘other party if you walk away from the negotiation. Who has most leverage answered through + Whose needis pester? + Who has most ose if a deals nat made? ‘Who can afford 9 walk away without reaching agreement? Conta. Second Semester 2014-2015MBA €319 Negotiation Skills and Techniques Why to Explore/Have Your BATNA cont John quoted tho price sted in the newspaper, and Paul objected “hey” The prospect stuck out is hand. Vitake it” John looked sheepishly at Paul and shook the now: buyer's hand. ‘After the owner let Paul sais, "cant belive that he pld you that much forthat ol ear” What Would Happen if You Don’t ‘Ascertain Your BATNA? + Strong inner pressure to reach an agreement ‘The danger of becoming committed to reaching an agreement ‘Types of BATNA? + Wallin BTW + Dynamic BATIVA Deterning Walkn BATA +o we have control over the resouces or can we Influence the other parties involved in nogataton? ‘00 we have an ongoing relationship with the ‘company that can helpful these needs? ‘Are there many competitors foking. out for an ‘opportunity todo busines withus? there serous competition? there any ime pressure for completion? Ascert ing Own BATNA? ‘Process of Determining BATNA, Develop 2 list of actions you might conceivably ate I no agreement reached ‘improve some of the more promising Meas and conven them nto practical optons: and + Select the option that seemsbest, ole of Third Parties + Reality Testing + costing Knowing the Other Side’s BATNA Strengthening Your BATNA? “Falling In Love" - Rule Second Semester 2014-2015MBA C319 Negotiation Skills and Techniques Disclosing BATNA? I you ae strong; make sure your counterpart knows it Ifyou areweak, work hard to keep him from eaiing it Wf your counterpart belleves he estronger than actualy i educate him tothe real facts he thinks he is weaker ‘thanactallyhe , don't say a word. Strategy and Tactics Strategy in a Negotiation 1. ntroduetion| 2, stata thinking vs. neremental thinking 3, Planing strategy 4, Strategie tides 5, Strategie choices in negotiation Strategic Attitudes 1, Simple and airect 2, Press and push 3. Cool and aloot Strategic Choices in Negotiation 4. When otto negotiate? 2. Soying "es! and No! 3 When to say'No"? 4 How say No? ‘Strategic Choices in Negotiation When not te negotiate? + Have definite power and have nothing to gin outotthe deal You are certs ote + Eforton time and expenses exceeds the gains Price is erly et +Other party is pot suthoried to deelde on settlement of sues, Second Semester 2014-2015MBA €319 Negotiation Skills and Techniques Strategic Choices in Negotiation Soying "Yes and Ne" ‘We te opt ye wera te apposed toe Me = We want to win approval and acceptance + We wish tobe tkedand avoid being unfriendly + We try toaveld hurt felings += We do not anticipate consequences property + We see ourselves asbein kind + We thinkit is good manners Strategic Choices in Negotiation When say’Ne? + When the other side demanding and makes thouahtlss remarks, = When you are asked to do something what the ‘other persons capable of ding. + When thle requests and interests cnt without Proities, + When you are notin a positon to deliver what it asked for For eample when the deadlines are ‘reasonable, + Do not fed obliged tojusiy every ‘no + Show concern forthe other patty when you want toreecthis ideas + Restate ther demande and proposals in a dferent way that wil be more suitable for you. + Come with a sounder proposal to counter the other porysviews. += We havea fer of confits + When thee are conditions that ean affect your ‘Strategic Che Tactics in Negotiation Howtosay No’? t.tntoduction + Sap prometly 2, Strategy Vs. Tacs 2. Relevance of tactic in negotiation 4. Tacticatepories 5. Commonly used tactics 6. Tactics basedon the power position 7. Defusingimproper behaviour Introduction + Tactics 2 device fr accomplishing an end. + Strategy isthe overall plan, + Taetiesare the actual means used wo gain a gol Strategy Vs. Tactics Tactic Categories + Dominance + Shaplog + Closing Second Semester 2014-2015MBA C319 Negotiation Skills and Techniques Commonly Used Tactics + The Bogey + The Keune + The nile + The Salami + Umited Authorey + Flt Accomp + Good Gu/BedGuy Tactics Based on the Power Positions of The Parties Tactics for Weak Postions + Be confident 1 Wellinformed Tactisfor Equals +0 not assume other party's ede and wants + Keepa record of concessions + Set doodtnes Defusing Improper Behaviour + tnorett + Hetty + Warn them + Set round rales + Tellthem the consacuences “act Handling Conflicts in Neg Introduction Whatis Conf? Trologies of conttet EHfect of Confer Levels of contet Philosophies of conflict Management How do we know there's conflict happening? What stops us rom wanting to resoive the coafet? ‘Steps Managing Colt 1L Introduction 2. What is Conflict? Confit i when two oF more valves, perspectives and ‘opinions are contradictory in nature and havent been aligned or agred about yet + Needs + Pesception + Power + votes + Feelings andemotions Second Semester 2014-2015MBA C319 ition Skills and Techniques 2. What is Conflict? ‘Some Key Messages About Conflict + Conflicts neither good nor bad. + Confit inevitable, + Conflict does not have to result in winners ‘and losers. + Im conlet both partis ten to believe that theiropinion fet. Too ofton both partes see thomsdlves as Innocent vitins Who represent the sie of ‘ruthand faines, 3. Typology/Types of Conflict + Taskeontent + Emotional + Administrative Effects of Conflict + Dysfunctional 5. Levels of Conflict + India + Group 5. Levels of Conflict Individual + tnrapersonal + Interpersonal + Approace approach + Avoldance-avoldance + Approach-avidance 5. Levels of Conflict Group group Intergroup Second Semester 2014-2015MBA C319 ition Skills and Techniques 6. Philosophies of Conflict Management + Tatonal + Behav 7. How do we know there's a conflict happening? ‘8. What stops us from wanting to resolve the conflict? + fearoftuther hurt + entation of the other person tathe encom + bie thatit won't be any use + enjoyment of confit as an ongoing pastime + desire tor revenge + need or apology + anger Steps in Managing Conflict + Analyzing the cont + Grating the strategy plementing the strategie in the negotiation process Analyzing the Conflict Crafting the Strategy Second Semester 2014-2015MBA C319 Negotiation Skills and Techniques + Negotiator Is less aly to analyze and lesen rom the negetiaton + Canbe to rigid and unyllarg. + Gets caught in les oF other unethical rane of pressure, Dual Concern Model Competing 1 | cree = Whentowsei + Importantisves ae atstake ny pewesing + otherpaty react with este good sportsmanship ' Don't need the stopertion or geod of the ‘other partyin the fate ssa come + Negotiting with someone who pret to be esters mI compete. Rierpritiner Sy Se ice + Youwanttolok tough competent, passonste. Competing Collaborating When owe a? rawbacls {= Negotlstor nocd to learn more about sues, options, concenns and avergent perspectives. + Cooperation needed tocarty through with decisions. + Carve out sufficient time and attention + Workablesolutions are not immediately evident. + Emotions are running high o a relationship has been damaged; yet commitment or interdependence is strong. Collaborating Drawbacke Process takes time, eneryy, effort, ‘commitment from all sides, + Decislons canbe delayed t0 long. += Mayleadto more competitne bargaining. + Difictt to being a constituency te agree to collaborative process of sluions. + Disagreements about process can derail dscursonof content. When touseit? + Youhove tle leverage inthe stuatien. + Ether of the party need time to coc dwn, + Issuesare petty or unimportant to you. + Potent disruption af relationship or statue ‘uo isnot worth, + You do not with tobe wisbly engaged with cartain partes o issues. + You are not the right person to take on this conflict or negotiation, Second Semester 2014-2015MBA C319 Negotiation Skills and Techniques Avoiding Drawbacks + The situation may nt "go away’ += You may lose the respect of people who expect you to engage + You don’ get what you need or what you could have negtiated succesful for youre, ‘Accommodating ‘When to we kt? + Putting a favor "in the bank" for 2 future negotiation, + Dealing with people who are volatile & content + Maintaining goodwill is more important than sues + Toshow your concerfor the other party + Tohave minimal dsruption of business. ‘Accommodating Drawbacks ‘May bend too quickly without real seoking to “understand thelr situation or yous + Seta precedent += Competitive people may take advantoge of you Compromising When to wet? +A quick dedson is more Important than an ‘optimal or prince one + Afalbock when other approaches don’t work. + iter settlements compromising Drawbacks + Lose sight of principles; own needs, long: term objectives. + Avoid really finding out what a confit Is about. Implementing the Strategies Second Semester 2014-2015